The Reserve Bank of Australia (RBA) has published a summary of the stakeholder feedback from a consultation paper titled “The Future System for Monetary Policy Implementation.” The responses influenced recent changes to the RBA’s open market operations, mentioned in a speech by Assistant Governor (Financial Markets) Christopher Kent.
The consultation paper explored principles and options for the future system, requesting stakeholder input on various topics. These topics included the configuration of the full allotment repo in the RBA’s open market operations, the potential effects of open market operation repo on Australian financial markets, the demand for reserves, and the role of non-repo operations.
A total of eleven written responses were received, primarily from Australian and global banks. The RBA followed up with certain respondents for more detailed discussions. The summary released is based on these written responses and the subsequent meetings.
“The RBA thanks respondents for their engagement with the consultation, and will continue to engage with stakeholders on the design of the monetary policy implementation system,” the RBA stated.
